
The ongoing trade conflict of the US with China has caused a sharp spike in Chinese and other Asian goods coming into India. Since China’s goods face blockades in the US, these goods are routed to markets like India. Now, local manufacturers are appealing to the Government of India to impose anti-dumping duties in their favor.
While it is disputable whether the volume of imports from China has increased significantly, the now-defunct policies of Trump did implement some tariffs which contributed to this change. Industrialists’ arguments claim that these exports redirected toward India are destroying the balance in the local markets and putting strain on domestic producers.
Market Disruption from Dumped Chinese Goods
Cheap products from China is big enough of an issue to have displaced countless local businesses that struggle in comparison to the inflated prices at which Chinese companies sell their products off. The price of imported viscose staple yarn has also been less than competitive which makes it worse, as it’s being sold at roughly $13 less than Indian counterparts.
The conquered territories are not only limited to textiles as imports of medical devices from China have shot up by 80 percent in twelve key segments. In addition, Chinese made Taiwanese rubber gloves also come at the satisfaction level of slashing local price by upto $8 per 1000units.
Policies of the Government in Order to Resolve the Issue
In response to the situation, the government of India is focusing on enhancing the enforcement of the Quality Control Order, which is associated with imports. These measures are intended to ensure that no goods which do not meet the stipulated requirements are brought to the country.
To combat the problem, a monitoring group composed of various ministries has been set up. This particular body resolves policy disputes regarding the protection of Indian industry competitiveness and subsidizes numerous instances of unfair trade competition in a timely manner.
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